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Ancillary revenues: GAO report and Subcommittee hearings promise more regulations

19-Jul-10: The much awaited GAO Report on ancillaries coincided with last week's House Transportation and Infrastructure Committee Aviation Subcommittee hearings. These were all about transparency, taxes along with populism, as it became open season on Spirit Airlines President and CEO Ben Baldanza, as Congress turned its attention on airline fees. The outcome is likely to be pressures - and most probably more regulations - to require greater transparency - and even, possibly, rolling back ancillary charges. There was also talk of (perhaps double) taxation of such charges. Regulations would also cover foreign airline disclosure, if the GAOs recommendations are accepted.

Qantas’ B787 orders juggled again as it prepares for domestic war. Jetstar to take 787-8s from 2012

14-Jul-10: Qantas, with 50 firm B787 orders and another 50 or so options/rights, is one of Boeing’s largest clients for the Dreamliner aircraft and gets second billing with the manufacturer after All Nippon Airways, the seed purchaser. The latest move, announced today, will now reverse the order in which Qantas’ LCC subsidiary Jetstar receives the aircraft. This implies an important reshaping of Qantas/Jetstar’s domestic and international strategy.

Second tier LCCs playing major role in reshaping European aviation (Part 1) This article is premium content

09-Jul-10: European LCCs, led by Ryanair, easyJet and Air Berlin, commanded 32% of intra-Europe capacity (seats) in 2009, representing spectacular growth from just 4.6% less than 10 years ago in 2001 and a 20.2% share in 2005. But the 'big three' are just part of the story. This special two-part CAPA report looks beyond the headline-grabbing 'big three' European LCCs to provide updates on more than 20 of Europe’s secondary LCCs. Part I reviews Air Southwest, Anadolujet, Atlasjet Airlines, Belle Air, Blue Express, Blue Air, bmibaby, CLICK4SKY, Flybe, Germanwings, Iceland Express and Jet2.com, while Part II (coming soon) will review the progress at Monarch, NIKI, Pegasus Airlines, SkyExpress, Smart Wings, Sun Express, Sverigeflyg, Thomson Airways, Transavia.com, TUIFly, Wind Jet and Wizz Air.

Share Market Performance

Air France considers LCC subsidiary; Aeroflot slips; SAS plummets

03-Sep-10: European airline shares were mixed on Thursday (02-Sep-2010), mirroring a day of mixed trading. On the whole, European markets ended the session slightly lower, despite the European Central Bank’s announcement of plans to keep interest rates down.

Air Mauritius awards contract to MAS Aerospace Engineering; Kenya Airways shares breaks decline

03-Sep-10: Air Mauritius shares rose by 6.4% on Thursday (02-Sep-2010). On the same day the carrier awarded MAS Aerospace Engineering (MAE) a one-year maintenance agreement for eight aircraft, comprising six A340-200s and two A330-200s.

UAC and Antonov press on with joint venture proposal

03-Sep-10: Russia’s United Aircraft Corporation and Ukraine’s Antonov could establish a manufacturing JV within two months. According to Antonov President and Chief Designer, Dmytro Kiva, negotiations between the two state-owned firms are well underway and an agreement could be made before Nov-2010.

ASUR's pax up 8.9%; Mexico's GAP forced to postpone shareholders meeting

03-Sep-10: ASUR – operator of Mexico’s Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan airports – reports total passenger traffic for Aug-2010 increased 9% year-over-year.

Air France considers domestic LCC; Wizz to open Belgrade base; Ryanair weighs up German network

03-Sep-10: easyJet shares gained 2.8% yesterday, coinciding with Deutsche Bank commentary that stated the outlook for airlines such as Ryanair and easyJet is more positive than other European carriers.

Chinese airline shares stronger; Thai PM supports Thai Tiger Airways JV

03-Sep-10: Shares in Hong Kong-listed Chinese carriers were generally stronger yesterday, led by China Eastern Airlines, with a share price surge of 5.5%. Shares in Air China, China Southern and Hainan Airlines, meanwhile, gained 4.3%, 2.4% and 0.9%, respectively, with Cathay Pacific shares increasing 2.9%.

Copenhagen to charge less at ‘CPH Go’ while Kuala Lumpur’s new LCCT will cost more to build

3-Sep-10 5:10 PM

Denmark’s Copenhagen announced it has reached a new price agreement with a number of airlines, so that the passenger charge for the airport's LCCT, ‘CPH Go’, will be approximately 35% lower than the current passenger charge. The airport will be the first major facility in Europe to offer differentiated prices, a practice that has had dangerous overtones in the past. Meanwhile the new LCCT at Kuala Lumpur airport looks as if it will cost almost 25% more than originally estimated.

JetBlue pre-empts Southwest at EWR

3-Sep-10 4:17 PM

On the heels of Southwest’s expansion into Newark, planned as early as next March, JetBlue will increase daily non-stop service between Newark and Boston, operating four daily flights to Newark's Liberty International Airport, complementing its schedule between Boston and JFK.

More single-aisle, fewer regional and jumbo aircraft in Boeing's forecast

3-Sep-10 4:12 PM

The retirement of older, single-aisle and regional jets will drive the majority of aircraft purchases in North America, according to a forecast issued yesterday by Boeing. The manufacturer said that North American carriers – the US and Canada – will take delivery of about 7,300 new aircraft over the next two decades for a value of USD700 million.

Japan Airlines files reorganisation plan; JAL and ANA LCC subsidiaries under consideration

3-Sep-10 3:53 PM

Japan has been one of the countries hardest hit by the global economic crisis, with the meltdown proving to be a catalyst for change in the North Asian nation’s aviation market.

Emirates makes first ‘regional’ flight with A380

3-Sep-10 3:35 PM

An Emirates A380 made its inaugural flight from Dubai to Manchester on Wednesday 01-Sep, the first time this type of aircraft has been operated into a 'regional airport'. The deployment of the A380 beyond primary airports such as Singapore, Frankfurt, Paris and Sydney has come sooner than most analysts expected and raises the issue of how airports cater for the giant widebody, whether they stand to gain from it and what constitutes a 'regional' airport.

Welcome to Centre for Asia Pacific Aviation (CAPA)

3-Sep-10 3:17 PM

CAPA is the leading global aviation knowledge practice, delivering market analysis and data to support strategic decision making at hundreds of the most recognised organisations in the industry. Established for 20 years, CAPA has developed an unrivalled reputation for independence, insight and integrity. Our extensive network of experts allows us to deliver research coverage across Asia Pacific, Europe, Middle East, Africa and the Americas on key trends and developments in aviation business, strategy, operations and policy. CAPA has led the way with flagship reports on issues such as low cost airlines, airport privatisation, training, ancillary revenues and the emerging markets of China, India and the Middle East. We look forward to continuing to help shape the direction of this fascinating and dynamic industry.

Oil recovers from seven-week low but price uncertainty continues – Friday Fuel Watch

3-Sep-10 12:40 PM

Oil prices continued to see-saw this week, as better manufacturing data from China and higher oil demand in Asia offset more signs that the US economic recovery is faltering. At the end of Aug-2010, US Federal Reserve Chairman, Ben Bernanke, attempted to sooth concerns about the pace of US growth, after the US government reported 2Q2010 GDP expanded by just 1.6%.

Philippine Airlines struggling as Cebu Pacific becomes largest carrier

3-Sep-10 10:25 AM

Cebu Pacific recently became the largest airline in the Philippines by domestic traffic and capacity, overtaking flag carrier, Philippine Airlines. The LCC has been going from strength to strength, expanding its route network and fleet, as PAL cuts back operations and slows growth, amid financial and labour difficulties.

Bombardier net down, optimistic on aircraft programmes

2-Sep-10 4:44 PM
Premium

Bombardier posted USD148 million in net income for the second quarter of its fiscal 2011 ending 31-July-2010, down from USD202 million a year ago. The company earned consolidated revenues of USD4.1 billion, down from USD4.9 billion from its second quarter 2009.

Reserve Bank enables banks to restructure aviation loans; Kingfisher seeks to raise USD350m

2-Sep-10 2:56 PM
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The Reserve Bank of India (RBI) has agreed to ease rules for the restructuring of loans for the nation’s debt-laden airlines. Banks will now be permitted to restructure unsecured aviation loans without classifying them as non-performing assets (Currently under RBI guidelines, only secured loans are eligible for restructuring).

Vietnam airport construction prioritised in ASEAN multi-billion-dollar plans

2-Sep-10 2:36 PM
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The Association of Southeast Asian Nations (ASEAN) has prioritised airport construction in Vietnam as part of a USD290 billion plan to develop infrastructure in the Asia pPcific region. ASEAN’s 10 member states and six non-ASEAN countries approved the plan to develop infrastructure in the region, covering ASEAN, China and Japan.

Turkish Airlines and Star Alliance intrude into Atlanta; a “tag” strategy that just might work

2-Sep-10 12:53 PM

Citing growing business between the two cities, Turkish Airlines has announced that its new Istanbul/Washington DC flight will be extended to Atlanta; pending approval. The move is either bewildering or bold—or perhaps a bit of each—given the fact that Atlanta is a bastion of Delta, and SkyTeam, strength.

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